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OptiBiotix licenses weight-loss technology to Premier Foods offshoot

The deal is with Knighton Foods, a supplier of powdered products to supermarkets and High Street coffee houses
woman with tape measure around midriff
Mmmm...sweet deal. The the synergy lies with Knighton's advanced powder technology

OptiBiotix Health plc (LON:OPTI) has signed a profit sharing agreement with a division of Premier Foods, which will manufacture and distribute the breakthrough weight-loss product, SlimBiome.

The deal is with Knighton Foods, a supplier of powdered products to supermarkets and High Street coffee houses.

The synergy lies with Knighton's advanced powder technology.

WATCH: Microbiome pioneer looks to ramp up revenues

READ: In-depth look at OptiBiotix

This, OptiBiotix said, was the key to developing an improved version of its product which is more easily soluble than the original and presents better.

Crucially for the end consumer, the flavour has been “greatly improved” along with ‘mouthfeel’.

“We chose Knighton due to their world leading expertise in adding value and differentiation to speciality powdered ingredients like SlimBiome,” said Stephen O’Hara, chief executive of the AIM-listed company.

“Their development work greatly improved SlimBiome's solubility, taste and mouthfeel whilst reducing the overall cost of manufacture.”

Exclusive UK deal 

Knighton will have the exclusive licence to manufacture and supply SlimBiome in the UK.

In return OptiBiotix will receive 50% of the profit. Also contained in the deal terms is an agreed cost of manufacture and minimum sales price per kilogramme.

“We believe working with Knighton, and similar partners around the world, provides the best opportunity of meeting the requirements of major retailers and the growing interest we are seeing in SlimBiome from partners worldwide," said O’Hara.

Positive endorsement

The broker finnCap said the Knight on deal was a positive endorsement of SlimBiome.

“Whilst the company is reluctant to provide sales forecast until it has developed a trading pattern, investors should note the positive momentum that is being displayed by OptiBiotix across all technology platforms,” said analyst Alex Pye.

The shares, up a fifth in the year to date, added a further 3% Wednesday to trade at 73p each. That values the business at just shy of £57mln.

Microbiome pioneer

OptiBiotix is a pioneer in the human microbiome, which is essentially the bacteria that inhabits the gut and skin.

It has found, for instance, small changes to the gut flora can affect the way the human body processes food.

Using its know-how it is developing compounds to tackle obesity (SlimBiome), high cholesterol and diabetes.

Knighton is just one of a series of deals Opti has inked of late. It has one with Tata Chemicals to develop weight management products for the Indian market.

It struck a profit-sharing deal with Italian firm Sacco to manufacture and supply its cholesterol-reducing compound LPLDL and the first sales of the product were made to HLH BioPharma Vertriebs·   

At the same time it has a non-exclusive agreement with Nutrilinea for the production and commercialisation of products containing the LPLDL in Europe.  

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